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OCR Business studies F297 - SHL Pre- Release 2014/2015

Hello everyone,

For those who study business studies at A2 - Have you received any kind of resources or help on the case study?

I'm really struggling to pick out key points from the profit and loss account and the balance sheet :mad:

If you have any idea, please do let me know

Thank you
:smile:

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Reply 1

Interrobang

Moved Study Help :smile:

Reply 2

username1177050

Original post by thepatel_1

If you have any idea, please do let me know

Thank you
:smile:

Hello, if you post the link I may be able to have a look and help you. I am also taking this exam but externally and didn't even know the pre release was out! I shall check the website

Reply 3

jakecre8

One point that I think is of importance is that SHL are becoming more highly geared. As you can see, a rise of £926000 in their long term creditors. However, this may be a loan along with their retained profit in order to fund an investment into new tangible assets which have risen by £2.5m.
It is also useful to note that their cost of marketing, distribution and product development has risen by £2.7m. As a result, it could be said that this may be a contributing factor to their increase in profit.
Another point is that in 2012, SHL's cost of sales were 44.4% of their total revenue but in 2013 their cost of sales was also 44.4%. This means that SHL did not take any actions in order to become more efficient. Their net profit increased by 39.8% but their were no reduction in costs.
Dividends increased dramatically by 140% and as a result, ROCE was increased to a large extent too. For example, Ian bought £50000 worth of shares (200000) and in 2012, he had a dividend of £275,000. But in 2013, he had a dividend of £660,526.

Hope this helps, if you want more info, PM me :smile:

Reply 4

thepatel_1

Original post by neal95

Hello, if you post the link I may be able to have a look and help you. I am also taking this exam but externally and didn't even know the pre release was out! I shall check the website

Hey,

http://www.ocr.org.uk/Images/181806-unit-f297-pre-release-case-study-june-2015.pdf - that's the link to the case study

Reply 5

r-t

Original post by thepatel_1

If you have any idea, please do let me know

Thank you
:smile:

sorry for the late reply, the main thing to point out is how much dividends Ian and Tim etc are receiving which shows that from the stakeholders view the business is successful. it also shows that instead of expanding into mardidi that they should emerge into the teenage brand themselves as they clearly have the money for this. it shows that they are successfully meeting customers needs as their sales revenue has been continuously increasing since they opened in 1999. there are more but it would take me forever to write it. I suppose just look at the figures and try and put yourself in the stakeholders shoes and see how your feeling. see if costs or revenue etc has gone up or down from the year before and whether it is a good thing or not. are you having trouble with the critical path analysis bit?

Reply 6

Jspurr

How would gearing be calculated? As I know that it equals long term liabilities / capital employed, but I can't find capital employed on the either of the financial records.

Reply 7

EFRobbo

Capital employed is the same as equity shareholders funds, and Net Assets, if you look on the balance sheets they're the same.

Reply 8

Jspurr

Original post by EFRobbo

Capital employed is the same as equity shareholders funds, and Net Assets, if you look on the balance sheets they're the same.

Thanks

Reply 9

ferdous

Hello

Can anyone think of any questions that might come up. Will be much appreciated.

Reply 10

jakecre8

there is a thread in a level business about this. just have a look :smile:

Reply 11

pkassaga

Please email me?? Am doing this exam

Reply 12

yoyo111

Possible questions:

Critical Path Analysis for maths question
Second question will be to evaluate the critical path
Question on exchange rates
Possibly on the mardidi investment
Stakeholder question about SHL

Reply 13

r-t

Original post by yoyo111

Reply 14

yoyo111

Original post by r-t

And then you can argue about Igor Ansoff's Product/Market Matrix for diversification and also link the critical path analysis to it possibly. Also other factors about Mardidi being reputable too

Reply 15

Merrick8432

Has anyone got the calculations for ROCE and Gearing Ratio?

Reply 16

jakecre8

I do. When I find my folder, I will reply. :smile:

Reply 17

thepatel_1

Original post by Merrick8432

Has anyone got the calculations for ROCE and Gearing Ratio?

ROCE:
2012: 1.68%
2013: 34.1%

GEARING
2012: 16.4%
2013: 20.8%

Means long term liabilities as a % of total capital has risen by 2.5%

Hope this helps

Reply 18

janvi_

Hey,

Sometimes I wish I never chose Business! Literally weeks away from the exam and we have has no help what so ever?
Given the pack and told to go do it ourselves.

Any idea on how to tackle this?

Reply 19

janvi_

Original post by r-t

This is exactly what I think aswell. I think for the Mardidi question though it may ask to argue whether they should invest in Mardidi or develop their own brand like an assess type question.

When answering the Mardidi question, it would be appropriate to draw up a 'T' table right? Suggesting the drawbacks and benefits of them?